A new study presented at the APEC 2015 CEO Summit has positioned Singapore as the third most desirable city for living and conducting business within the Asia-Pacific Economic Cooperation (APEC) region.
Conducted by PwC, the “Building Better Cities” study aims to provide city leaders with insights into their current standings and to encourage collaboration and knowledge sharing among APEC cities to tackle persistent challenges.
The study examines the role urban centers play in APEC’s economic and social progress, emphasizing their growing global influence. It assesses cities through three key perspectives: their performance in fundamental urban development, their unique characteristics, and the obstacles they face in their growth trajectory.
Yeoh Oon Jin, Executive Chairman of PwC Singapore, praised Singapore’s achievement, highlighting its status as a leading technology adopter and a renowned global financial hub. He stressed the importance of continuous value creation, strong partnerships, and the adoption of best practices for Singapore’s continued growth.
The study considers factors such as middle-class population growth, GDP growth, and mobile broadband access to provide a comprehensive view of the progress and potential of rapidly developing cities.
PwC emphasizes the increasing significance of city branding in attracting a global and mobile workforce. Cities that can cultivate a unique identity and offer a desirable live-work balance have a competitive advantage in attracting talent and investment.
Guillermo Luz, COO of the APEC 2015 CEO Summit, highlights the importance of intercity collaboration, stating that the study’s metrics and diagnostic tools can help mayors and urban planners enhance their communities.
The study categorizes 39 indicators into five areas of urban excellence:
Connectivity
Well-connected cities are inherently attractive. Singapore, Hong Kong, and Tokyo stand out in this category, excelling across all connectivity indicators. Efficiently moving people and information within a city is vital for social and economic well-being, going beyond convenient commutes or city travel apps. The top cities in this category have long prioritized infrastructure development and planning, embracing smart and digital solutions early on.
Singapore leads in connectivity, ranking first in broadband quality, sharing the top spot in public transport systems with several other cities, and securing first place in traffic congestion.
Keith Martin, Cities Infrastructure Centre Leader at PwC Singapore, attributes Singapore’s success to its robust and comprehensive approach to connectivity, benefiting all aspects of city life. This achievement stems from long-term planning, funding, and regulatory frameworks that support both physical and digital infrastructure. He emphasizes the need to broaden the definition of connectivity to encompass cross-border city collaboration and knowledge sharing within APEC. Collaborative efforts to develop efficient and affordable urban spaces are crucial for meeting the needs of growing and diverse populations.
Economics
Urban centers collectively contribute approximately 70% of APEC’s total GDP. With rapid urbanization, this contribution is expected to rise. Hong Kong, Singapore, and Tokyo, all financial powerhouses, excel in this category, while Bandar Seri Begawan, Novosibirsk, and Port Moresby lag behind.
Singapore’s economic prowess places it second in this category, trailing only Hong Kong. The report highlights Singapore’s top ranking in ease of doing business, attracting foreign direct investment, and openness to trade.
The PwC’s APEC CEO survey reflects this economic confidence, with 83% of respondents in Singapore (67% in APEC) optimistic about revenue growth in the coming year. This confidence extends to the next three to five years, with 92% of respondents in Singapore (91% in APEC) expressing optimism.
The study suggests that managing cities like businesses, particularly in infrastructure development, can be advantageous. A long-term perspective that considers sustainability and feasibility from the outset is crucial. Cities often grapple with challenges like ensuring infrastructure plans outlast multiple mayoral administrations and ensuring the highest engineering standards in the face of climate change and its associated weather events.
A strong correlation was observed between a city’s openness to trade and its overall economic performance. For instance, both Shanghai and Beijing’s overall economic ranking suffered due to relatively low scores in openness to trade.
Health & Welfare
Meeting the healthcare needs of their populations is a challenge for APEC cities, and this is neither a new nor an isolated problem. Tokyo, Osaka, and Toronto excel in this category, while Cebu, Manila, and Port Moresby continue to face significant challenges.
Established cities grapple with legacy issues stemming from the evolution of healthcare systems, while newer cities struggle to keep up with medical advancements, costly specializations, and aging populations. While the sharing economy holds potential solutions, cities may take time to implement the necessary technology.
Crime is a fundamental indicator of well-being within the Health & Welfare category. Interestingly, the study did not find a definitive link between crime and income inequality (GINI Index) or literacy rates. This challenges the assumption that income equality and education are directly related to lower crime rates.
However, further analysis revealed that the largest cities with the lowest crime rates also had the highest literacy rates (Tokyo and Seoul).
Culture & Social Health
A truly livable city should provide fulfillment to its residents while also enabling them to contribute to the city’s growth. This requires access to quality education, economic opportunities, arts and culture, vibrant nightlife, and safe and clean neighborhoods, all supported by a transparent government and an inclusive and tolerant society.
Toronto leads this category, followed by Melbourne and Auckland, while Surabaya, Bandar Seri Begawan, and Port Moresby have the most room for improvement. A strong correlation was found between an educated population, open governance, and a more tolerant society. Encouragingly, the study also highlighted efforts by many cities to promote economic mobility through education.
Environmental Sustainability
Vancouver, Toronto, and Seattle excel in environmental sustainability, while Manila, Ho Chi Minh City, and Lima have significant progress to make. APEC economies are particularly vulnerable to the adverse effects of poorly managed waste.
Waste generation is a significant concern, and while this is set to increase, cities, due to their high population density, can be effective testing grounds for innovative waste management solutions. Seoul, for instance, recycles 89% of its municipal waste through a combination of laws, programs, and regulations that address the entire waste cycle. Significantly, the city imposes charges for non-recycled waste.
Disaster management is increasingly critical for the sustainability of many cities in the study. The region is susceptible to monsoons, earthquakes, typhoons, tsunamis, and hurricanes. Factors driving Asian economic growth, including rapid urbanization, could exacerbate the region’s vulnerability to these disasters. In fact, APEC CEOs cite potential disruptions from natural disasters as a significant deterrent to investment in the region.
Interested?
Read the report and the survey here.
*“Building Better Cities” draws on the methodology used in PwC’s “Cities of Opportunity” study, aiming to highlight urban success stories within APEC cities by evaluating their livability, sustainability, and competitiveness. The study is based on publicly available information and supported by extensive research. Data was collected during the second and third quarters of 2015 from three primary sources: global multilateral development organizations (e.g., the World Bank and the United Nations), national statistics organizations and municipal administrations, and commercial data providers. The rankings aim to provide clear and straightforward observations on APEC cities and should not be interpreted as expressions of opinion or criticism.
The 2015 APEC CEO Survey, conducted by the PwC International Survey Unit between June 23 and August 21, 2015, gathered insights from 800 CEOs and industry leaders across 52 countries with operations in all 21 APEC economies.